Categorized | Residential

Home Values Will Likely Decline in 2012 in US

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Any hopes that home values would finally start to increase in 2012 are starting to diminish. According to the most recent reports, home values fell at their greatest rate in 2011 during the fourth and final quarter. While another decline such as that experienced during the fourth quarter is not likely to occur, analysts and real estate experts believe that home values will consistently drop throughout 2012.

It is believed that the housing market will decline in value by just under four percent in 2012. While some city and regional markets will be ahead of schedule, the national residential real estate market will not hit rock bottom until some point in 2013. The news of the expected decline should not come as a major surprise, as the recent bank settlement promises to bring about more foreclosures in the immediate future.

Such factors as home sales, housing inventory, and unemployment will all play a major role in the performance of the residential real estate market in 2012. Cities like Los Angeles and Phoenix will likely bottom out early in 2012, whereas those such as San Francisco, San Diego, and Pittsburgh won’t hit their bottoms until late 2012 or early 2013.

Although the news of a decline on the national level is troublesome, most experts are more optimistic about the news. They believe that 2012 will be a better year overall than 2011 for the residential property market. They believe that it may be the year that some of the major markets finally hit bottom, and those that don’t are not too far off from doing the same.

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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